Cleaning up credit

[kd529]

My husband and I are trying to clean up our credit. We have many lates, defaults and charge offs. We will be able to start negotiating the debt. I have read the best way to have it reported is to have the OC report paid for lesser amount instead of charged off. Can someone verify for me that I understand this correctly: date of first delinquency -  will fall off credit report 7 years after this date (not the date major delinquency first reported)?

Also We have old settled debt that current status is charge off but comments say "account paid for less than full, charge off account" is this the best possible way to reflect this or should I ask OC to report it differently?

Our charge offs go back several years (2006, 2007). Will we see improvement in our credit score once we pay if off or will improvement only come after the 7 years? Current equifax is 495 & 538.

[guiness56]

I don't believe having it report as paid than less than owed is better than having a CO report.  It is probably worse.

Yes, items fall off up to 7.5 years from DoFD.

Any  comments saying you paid for less, settled for less, CO, paid after CO are negative comments and adversely affect your score.  The paid for less and settlements are probably looked at more harshly by creditors than a paid CO.  You can ask the OC but I don't know if they would be willing to change it. 

Whether you see improvements in your score depend on what type of credit and exactly how it is reporting.  Meaning if it is a CC, is there a CL and balance reporting.